Launch of the NSE initial public offer in 2014. African IPOs expected in
2016 include the self-listing of the Dar es Salaam Stock Exchange,
Botswana Telecoms and real estate fund Tadvest's dual listing in
Mauritius and Namibia. PHOTO | FILE
By Reuters
In Summary
African companies are likely to launch more than a dozen
initial public offerings (IPOs) this year, defying commodity price drops
and capital flight from emerging markets, international law firm Baker
& McKenzie said on Monday.
If transactions in the pipeline are concluded they are likely to
raise $3.1 billion, some $1.5 billion more than was raised by last
year's 21 IPOs on the continent, said the American Baker & McKenzie,
a leading law firm by deal count for mergers and acquisitions in
emerging markets, in a statement.
The projected amount to be raised will be the highest since
2010, the law firm said, adding a lack of demand at home could force
companies to seek dual listings abroad to expand the pool of investors.
"Fifteen IPOs are already in the pipeline, with one, Nigeria's
Interswitch, which processes payments for banks and operates in five
African countries, could be Africa's first billion-dollar IPO," the firm
said in a statement.
Other IPOs expected include the self-listing of the Dar es
Salaam Stock Exchange, Botswana Telecoms and real estate fund Tadvest's
dual listing in Mauritius and Namibia, Baker & McKenzie said.
"The wider continent still faces challenges and there is little
local institutional investment or retail demand other than in the
biggest economies," said Edward Bibko, head of the firm's capital
markets practice for Europe, Middle East and Africa.
"This means larger companies have to dual-list in a global financial centre like London, as well as their home market."
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